Written by: Jeremy Shafer
As February winds down, we will be treated to yet another spectacle from the nation’s capital. This one goes by the name Sequester.
To quote Yogi Berra, “It’s like déjà vu, all over again.”
A few things seem important to remember as the debate heats up:
- It seemed like a good solution in 2011. The President proposed it and both Democrats and Republicans voted for it.
- Sequester is a spending cut by abnormal means. It forces (perhaps indelicately) some of the spending cuts that most Americans agree we need – even if we don’t want them.
- Replacing sequester is simply trading for the devil we don’t know. Rest assured any measure that could pass with bi-partisan support would contain some form of spending cuts and increased revenues that will look as undesirable as sequester.
Simpson and Bowles’ updated plan is worth reading, though it’s unlikely to be the basis for a bill in the house or senate. Mike had a chance to hear them at the last Schwab conference and shared his thoughts.
Whether we get this plan, a new plan, or sequester, the end result we all hope for is a stable path for American prosperity. That will require some uncomfortable adjustments. Here’s hoping we make sensible progress in the next seven days.